Export Bill Under L/C Discounted Without Recourse Basis

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Export Bill Under L/C Discounted Without Recourse Basis

After product delivery is complete under the Usance L/C, customers have to submit Foreign Bills under L/C to the bank to further collecting a payment from the issuing bank. In this case, we cannot buy such Foreign Bills Without Recourse if the issuing bank have no credit line or customers do not have a credit line for purchasing Foreign Bills under L/C (FPL) or with a credit line but not available. The bank needs to sell such Bills to international bank to get rid of all risks occurring from default of payment by receiving interest margin and profit from exchange rate and fee as a consideration.

Type of Service

L/C buying Without Recourse defined as the Usance Export Bill available for customers who wish to sell such bill to the bank at a discount rate under the condition of not claiming anything from customers (Without Recourse)

L/C buying Without Recourse could be done under two methods:

The bank buys L/C ticket itself

The bank sells the L/C ticket to an international bank (Re-negotiation)

Service Objectives

To provide convenient service for customers who are without FPL credit line or with credit line but not in full amount or with credit line but need to sell the export ticket without recourse using as the working capital for business and support the bank’s Trade Finance

Applicants’ Qualifications

Being international exporter with the Usance Letter of Credit

Being the bank’s customers without FPL credit line or with credit line but not available or with credit line but needs to sell the ticket without Recourse

Service Terms / Conditions

Applying for service, please contact the international trade department and international business center

Usance L/C, exporting within a period of time

We reserve the right to buy the export ticket without recourse in case of receiving the acceptance from the issuing bank only

Required Documents

Request for negotiation/discount of export bills drawn under L/C application form with the company authorized persons’ signatures and seal.

Original L/C specifying customer’s name as the beneficiary, but not a restricted L/C

Bill of Exchange: B/E

Documents as required on the L/C

Benefits
Receiving working capital faster without waiting for the due date on L/C